Finance

Loan-to-Value Calculator

Measure how large a loan is relative to the value of the asset securing it.

Last reviewed: April 30, 2026Free toolMethodology

Loan-to-Value Calculator

These fields start with sample inputs. Keep them or replace them, then run the tool to show a fresh result.

Number fields accept plain values and common formatted input such as 250000, 250,000, or 1,234.56.

Result

Calculating the sample result.

Why it matters

Loan-to-value is widely used in lending and collateral analysis because it shows the lender's cushion and the borrower's equity position.

When to use

  • Checking down payment or equity assumptions
  • Comparing refinancing scenarios
  • Reviewing collateral coverage on an asset-backed loan

Inputs & Outputs

Inputs

  • Loan amount is the debt balance or proposed financing amount.
  • Asset value is the appraised, market, or agreed collateral value.

Outputs

  • LTV ratio shows the debt share of the asset value.
  • Equity amount shows how much value remains beyond the loan balance.

LTV formula

Divide the loan amount by the asset value and convert the result into a percentage.

LTV = loan amount / asset value

Worked example

1

Refinance review

A property worth 420,000 has a planned loan balance of 315,000.

Inputs

  • Loan amount: 315,000
  • Asset value: 420,000

Steps

  • LTV = 315,000 / 420,000 = 75%

Result

  • The loan-to-value ratio is 75% and equity is 105,000.

Edge cases & caveats

  • Asset value can change independently of the loan balance.
  • Different lenders may use different value methods or thresholds.

Frequently Asked Questions

Is lower LTV always better?

Lower LTV generally means more equity cushion, but the right level depends on the use case, available capital, and financing terms.

Can LTV exceed 100%?

Yes. If the loan balance is larger than the asset value, the result exceeds 100% and the borrower is underwater.

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